Joann Fabrics Announces Closure of Nearly 500 Stores

News Summary

Joann Fabrics is set to close approximately 500 of its 800 stores across the U.S. amid a challenging bankruptcy process. This decision reflects the company’s need to ‘right-size’ its footprint and cope with unexpected inventory issues. California, Florida, and New York are among the states that will see the most closures. As these changes unfold, the impact on employees and the crafting community could be profound, with going-out-of-business sales anticipated to start shortly after February 14, 2025.

Joann Fabrics to Close Nearly 500 Stores Nationwide

In an unsettling turn of events for crafters and DIY lovers across the country, Joann Fabrics has announced plans to close approximately 500 of its 800 stores as part of a bankruptcy process. With this move, the company aims to “right-size” its footprint to help ensure its long-term future. This decision could leave a significant mark on communities, employees, and loyal customers who have made Joann a staple for crafting supplies.

Impact Across the U.S.

Representing more than half of its locations, these closures will span all 50 states. However, some states are set to feel the impact more than others. California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington are slated to lose the most stores. In New York alone, over 20 locations are expected to close, including three stores right in the Rochester area.

Behind the Bankruptcy

Joann Fabrics previously filed for Chapter 11 bankruptcy twice—in March 2024 and again in January 2025. The company has indicated that the latest closures result from “acute and unexpected” inventory issues and underperforming locations. Interestingly, during its first bankruptcy in March 2024, Joann managed to emerge as a private company while keeping all its stores open. This time, however, the future looks different.

The Staff and Community Consequences

With approximately 19,000 employees working in 49 states, the impending closures promise to alter the lives of many. Employees can expect significant changes, while customers might find their favorite crafting haven disappearing from their neighborhoods. Communities that have come to rely on Joann for more than just supplies—such as local crafting events and workshops—may also feel the loss deeply.

What Lies Ahead

A hearing concerning the closure motion is already on the calendar for February 14, 2025. If the court approves the closures, going-out-of-business sales are expected to kick off on February 15, 2025, allowing shoppers to snag discounts on their favorite crafting materials. These sales could last for several months, giving folks a chance to stock up before the doors close for good.

Retail Landscape Challenges

Sadly, Joann is not alone in facing these challenges. A broader trend in retail is creating waves as over 15,000 stores across various retailers are expected to shut down in 2025. Changing consumer behaviors, along with inflation-related constraints on discretionary spending, are prompting many businesses, including well-known names like Kohl’s and Macy’s, to rethink their store strategies.

Online Presence Continues

Although brick-and-mortar stores are being hit hard, Joann continues to operate online. However, in a bit of a twist, they are no longer accepting gift cards for online purchases. While convenience may still be available through their website, the loss of local stores leaves many wondering just what the future holds for their beloved crafting hub.

Crafting Community Left to Reflect

As Joann Fabrics prepares for this significant shift, one can’t help but look back on all the joy and creativity these stores have brought to local communities. From sewing classes to holiday crafting events, there’s no denying that Joann has been an essential part of the craft-loving world. The coming months will undoubtedly be watched closely by both supporters and skeptics alike, as we all wonder how the crafting community will adapt to the new landscape.

Deeper Dive: News & Info About This Topic

• NBC New York
• Wikipedia: Bankruptcy
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• Google Search: Joann Fabrics bankruptcy
• USA Today
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• CNN
• Encyclopedia Britannica: Joann Fabrics
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